Globally, M&A activity is on increasing. However, the rates of growth differ. The level of activity varies by industry and geography.
M&A is on the rise in certain sectors, such as energy, technology and healthcare. Certain industries, such as financial services and education have seen a modest increase.
Many companies are seeking profitable growth and business transformation through strategic acquisitions. In particular they are targeting businesses in the service sector that offer digital solutions for customer engagement and business operations and companies which can assist them in complying with environmental regulations or cut emissions. They may also want to purchase manufacturing assets, like those used for EV battery production.
Global M&A activity slowed down in the first half of 2024 but could increase as financial sponsors use their capital, and activist investors continue insisting on a change in corporate behavior. The Americas was the biggest M&A market, followed by Asia and Europe. In terms of deal value, the first https://vdr-tips.blog nine months of 2024 saw more deals worth $10 billion or more than in any previous year.
M&A is enhanced by the rapid pace of technological change as companies acquire new technologies that enhance products or allow them to enter new markets. M&A in the industrial manufacturing sector is increasing as companies invest in AI and machine learning as well as predictive robots and smart factories in order to improve efficiency and productivity. The growing popularity of e-commerce also triggered M&A by logistics providers seeking to acquire or create distribution networks. Some companies combine to expand or consolidate their product lines. Others join for cost-savings or R&D synergies.
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